The Pegasus View May 2010:
Bookings
Growth Translates to Expected Revenue
Increases of +30% Through September

Double-digit
growth in booking volumes evidenced for
both GDS and ADS

SCOTTSDALE, DALLAS and LONDON (June 22, 2010) –
Forward-looking data from Pegasus Solutions shows a more than +30%
increase in
global distribution system (GDS) revenue for hotels year-on-year
through the
end of September. The positive data, as reported in the May issue of
The
Pegasus View, indicates double-digit growth in hotel booking volumes
for both
corporate and leisure travel.

The Pegasus View sources data from billions of GDS
and alternative distribution system (ADS) transactions, representing
corporate
and leisure travel respectively, for nearly 100,000 global hotels. With
forward-looking
data indicating sustained increases in GDS average daily rate (ADR) and
length
of stay (LOS), the May report also shows a remarkable +39.6% increase
in net
revenue on a date-of-booking basis for the GDS channel, according to
Mike
Kistner, chief executive officer of Pegasus Solutions.

“In last month’s edition, we gave Eyjafjallajokull
much of the credit for the increased bookings and revenue through the
GDS
channel,” said Kistner. “However, in the absence of another ash crisis,
May
continued the upwards growth trend with the highest GDS revenue
increase over
2009 for any month in 2010. May bookings only fell off April’s
unexpected boost
slightly, maintaining a powerful growth rate of +26.6%, and a continued
rise in
ADR of +6.5%.”

The ADS channel, which represents online hotel
reservations, is experiencing somewhat slower and steadier levels of
growth,
accompanied by continually depressed ADR. These ADR levels, however are
showing
slight signs of increasing. With the now to be expected jump in
look-to-books
of +53.5% year-on-year, ADS revenue also remains stifled due to shorter
stays.
However, lead times in May increased by one-tenth to 26.2 days, another
important indicator of a return in consumer confidence.

“Leisure travel demand is alive and well. Consumers
will be traveling this summer, though they are shortening their stays
and
expanding searches for the best value,” added Kistner. “With the return
of
traveler confidence comes the opportunity to increase your revenue.
Merchandise
the guest experience, offer a guest-focused service model and create
demand for
your unique product.”

The Pegasus View for May 2010 is available in its
entirety with global and regional expert analysis online and by free
subscription at www.pegs.com. Data reported in The Pegasus View comes
from
Pegasus Solutions, the world’s single largest global processor of hotel
transactions through the four GDS (Amadeus, Galileo, Sabre, and
Worldspan) and
ADS channels.

About Pegasus Solutions Inc. –
Proud honoree of the
2010 CIO 100 awards
Pegasus Solutions is the world’s leading
provider of
technology and services to hotels and travel distributors, supplying
the
award-winning RezView® NG central reservation system, electronic
distribution
services, advanced agency commission processing and payment services,
and hotel
marketing representation services. Founded in 1989, Pegasus created and
launched the hotel switch, and today its customers include nearly
100,000
properties around the globe as well as a majority of the world’s travel
agencies. Additionally, Pegasus’ powerful representation arm
incorporates
Utell® Hotels & Resorts and Utell Connect, services that have
been chosen
by more than 9,000 member hotels in 146 countries, making Pegasus the
hotel
industry’s largest third-party marketing, sales and reservations
specialist.
Pegasus also powers the niche consumer Web site www.hotelbook.com™,
dedicated
to promoting independent and boutique hotels throughout the world.
Headquartered in Dallas, Pegasus has 18 offices in 11 countries,
including
regional hubs in London, Singapore and Scottsdale, Arizona. For more
information,
please visit www.pegs.com or www.utell.com.